Mirant, the American global energy company, has announced the sale of its Canadian natural gas aggregator services contracts, a significant portion of its natural gas transportation contracts and a portion of its storage contracts to Cargill Limited.
‘This transaction will allow Mirant to reduce its collateral obligations and strengthen our corporate balance sheet,’ said Rick Pershing, executive vice president, Mirant. ‘Mirant will continue to retain a presence in the Canadian natural gas sector because we believe Canadian natural gas is important to our US operations.’
Cargill is purchasing contracts representing 380 million cubic feet per day of natural gas transportation assets and approximately 1.3 billion cubic feet of natural gas storage from Mirant, as well as Mirant’s ‘netback pool’.
The netback pool is the portion of the natural gas marketing contracts that market the aggregate supply of natural gas from over 500 Canadian natural gas producers associated with the former TransCanada pool business.
Cargill will also assume the management services agreements to operate the aggregator businesses of Pan-Alberta Gas Ltd., Northwest Pacific Energy Marketing Inc. and CanWest Gas Supply, Inc.
This acquisition will allow Cargill to focus its North American natural gas trading operations to service producers and customers in Calgary, Alberta. Cargill will also seek to employ a significant portion of Mirant’s Calgary based employees. Mirant will retain a Calgary office and approximately 30 of its 100 employees.
The transaction is expected to close later this year pending regulatory approvals. Additional terms of the transactions were not disclosed.